The $6.5 Million Pump for Pingify International Inc. (OTCBB:PGFY) Gets Suspended
It seems that the stock of Pingify International Inc. (OTCBB:PGFY) will not in fact be going up to 2 dollars despite the promises of the pump outfit StockTips. Especially when at the start of today’s session the Securities and Exchange Commission suspended it from trading. This marks the first time that a pump carried out by StockTips ends in suspension.
The reasons cited for the decision by the SEC are “concerns regarding potential manipulative activity in Pingify’s common stock that appears to be related to a promotional campaign”. The stock will resume trading on May 29 most likely on the Gray Market at a significantly lower price.
Such an outcome should not be a surprise when on the second day of the pump the Chief Financial Officer of the company issued a letter to the shareholders in which he urged both the SEC and FINRA to investigate PGFY.
He specified that the people behind the $6.5 million promotion are more than likely the owners of millions of extremely cheap shares. Digging through the filing reveals that back in 2012 the company sold 25 million shares priced at just $0.005 when at the high of the pump the stock was trading for more than $1.7.
StockTips continued to tout the stock right till the end with the latest email alert coming minutes before the suspension. In a rather ironic fashion the email projected that today is going to be “the tipping point” that will sent PGFY flying to $2. It remains to be seen if StockTips will acknowledge what happened or if they will just fall into silence for a while. We often warn our readers that playing pumped stocks is becoming increasingly riskier. Yesterday another promotion began with the creation of landing page for MediJane Holdings Inc. (OTCMKTS:MJMD). The disclosed budget is $200 000 and the combination of a marijuana pennystocks and a paid pump makes them a prime target for the next SEC investigation.
